The Campus Bookstore Sells Stadium Blankets Embroidered with the University

question 50

Essay

The campus bookstore sells stadium blankets embroidered with the university crest.The blankets must be purchased in bundles of one dozen each.Each blanket in the bundle costs $65,and will sell for $90.Blankets unsold by homecoming will be clearance priced at $20.The bookstore estimates that demand patterns will follow the table below.
a.Build the decision table.
b.What is the maximum expected monetary value?
c.How many bundles should be purchased?

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of a company’s budgets and financial plans, consolidating them into an overall budget.

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacture of products.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.

Finished Goods Inventory

Inventory of finished goods available for sale but not yet purchased.